On Wednesday morning, the currency exchange rate had bounced off the resistance of the 1.2080 mark, which was strengthened by the weekly R2 simple pivot point at 1.2075.
Economic Calendar Analysis
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The EUR/USD has moved from 15.7 to 28.9 pips on the announcement.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
EUR/USD hourly chart's review
On Tuesday, the EUR/USD currency pair skyrocketed to the weekly R2 at 1.2075.If the predetermined resistance level holds, it is likely that a reversal south could occur in the nearest future. Note that the exchange rate could gain support from the 55-hour SMA and the weekly R1 in the 1.2000/1.2020 area.
If the given support holds, a reversal north could follow. Otherwise, the currency pair could target the support formed by the weekly PP and the 200-hour moving average circa 1.1920.
Hourly Chart
On the daily candle chart, it can be observed that the rate has reached a high level not experienced since May 2018. In the meantime, note that the rate could test that year's high level at 1.2528.
In the meantime, the rate's s urge should first test the 2017 high level of 1.2100.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, on the Swiss Foreign Exchange trader open positions were bearish, as 60% of open position volume was in short positions.
On Wednesday, the sentiment was 61% short.
Meanwhile, trader set up pending orders in the 100-pip range around the pair were 62% to sell the pair.